South Korea’s ruling People Power Party (PPP) is preparing to revisit its position on cryptocurrency taxation during a workshop scheduled for Aug. 27, according to a report from Digital Asset. Party leader Jang Dong-hyeok said the party will share its stance after discussions, noting that the PPP has maintained a general position on digital assets but has not yet clearly responded to proposals from the Democratic Party or the Lee Jae-myung administration.
The government has proposed taxing digital-asset income starting Jan. 1, 2027, following multiple delays from the originally planned January 2022 implementation. The postponement was part of a broader tax revision package aimed at easing the burden on retail investors and aligning with global regulatory trends. The current proposal would apply a 20% capital gains tax on crypto profits exceeding 2.5 million won, approximately $1,800, per year.
At the same time, a public petition on South Korea’s National Assembly platform calling for a two-year delay to cryptocurrency taxation has surpassed 5,000 signatures since its registration on Aug. 17. The petition argues that taxing crypto now would reduce rather than increase actual tax revenue, citing a sharp drop in corporate tax payments from major exchanges such as Dunamu. It also points out that most domestic crypto investors are currently sitting on unrealized losses and that imposing taxes under such conditions would burden retail investors and alienate younger voters.
Under National Assembly rules, any petition receiving more than 5,000 signatures is referred to the relevant standing committee for review. The signature period began on Aug. 21 and will remain open until Sept. 20. If the petition is formally reviewed, it could influence legislative discussions ahead of the 2027 implementation date, potentially pushing the effective date to 2029.
South Korea has one of the largest cryptocurrency markets in the world, and the outcome of the PPP workshop could shape final tax policy, affecting millions of investors. Key points to watch include the specific tax rate, exemptions, and possible amendments, as well as whether lawmakers consider adjusting the tax threshold or introducing more favorable measures for long-term holders.
